This is the type of trading I practice, and this is one of the most useful youtube videos i’ve seen. And i’ve seen like 50 thousand no kidding. Thank you so much, niw added two new indicators to my arsenal. 😊
Great question… there are many different meanings reversion exits you can backtest. Here are a couple that tend to work well: exit when… - the RSI2 crosses above 40 - the stock has a higher close - the stock crosses above a EMA5 - two higher closes in a row Etc You are really just looking for any short term strength
I've just finished a study where I compared a number of mean reversion signals and the best performing wasn't mentioned here. It's simply the distance the price moves away from a moving average. Extreme distances almost always signal a reversion, but as with all reversion strategies you do need to wait for confirmation.
@@EnlightenedStockTrading Another interesting option is Bollinger Bands with a SD of 2.5 or 3. Fewer trades, but more reliability. Again, important to wait for a confirmation.
Im using the harsi indicator (heiken ashi RSI) I find that its the most precise oscillator especially when used across timeframes it can find the point of reversion. Was a big upgrade from the standard RSI
@EnlightenedStockTrading it's the one by Jay Rogers on tradingview, been using it to capture trends on the 5min based off mean reversion on the higher time-frames
I use the Williams Percentage Range for mean reversion, you set it to a 200 period and it will give you the average divergence from the 200 period MA, why does no one else talk about this?
hi thank you for sharing this, looks like a good strategy, can you share which indicator it is on tradingview for the consecutive up and down bars please, thanks.
When you enter in the direction of Trend, its Trend Following..Converse is Meane Reversion..You state for MR, but examples are TF..Plz correct me if wrong...
Mean reversion is typically when you buy after a short sharp counter trend move and hold for the snap back to the trend then sell. Trend following is much longer duration and buys strongly trending instruments (often with breakouts but not always) and holding till the primary trend clearly changes… does that make it more clear?
Bro u are coming close to spoon feeding the public working strategies. This is not good. There are always two sides to a transaction and one has to be an idiot for this to work. Lets keep it like that. Lol Im joking obvs.
This is the type of trading I practice, and this is one of the most useful youtube videos i’ve seen. And i’ve seen like 50 thousand no kidding. Thank you so much, niw added two new indicators to my arsenal. 😊
i’ve watched*
Awesome - thrilled you found it useful. glad to have you here!
A very useful video mate, even for a trader like myself. Thanks for posting, and cheers.
Awesome - thank you for watching!
This is an extremely useful video about mean reversion trading.
Thank you Stephen, I appreciate you taking the time to watch!
Great video!
Just a quick question - where do you crystalize your profits?
Great question… there are many different meanings reversion exits you can backtest. Here are a couple that tend to work well: exit when…
- the RSI2 crosses above 40
- the stock has a higher close
- the stock crosses above a EMA5
- two higher closes in a row
Etc
You are really just looking for any short term strength
Thank you for the excellent tutorial.
Glad you found it useful - thank you for watching and for taking the time to comment 😁
I've just finished a study where I compared a number of mean reversion signals and the best performing wasn't mentioned here. It's simply the distance the price moves away from a moving average. Extreme distances almost always signal a reversion, but as with all reversion strategies you do need to wait for confirmation.
Yes, I agree that can work really well - thank you for sharing your experience.
@@EnlightenedStockTrading Another interesting option is Bollinger Bands with a SD of 2.5 or 3. Fewer trades, but more reliability. Again, important to wait for a confirmation.
LOL...I see what you did there...
Im using the harsi indicator (heiken ashi RSI)
I find that its the most precise oscillator especially when used across timeframes it can find the point of reversion. Was a big upgrade from the standard RSI
Nice - I’ll add it to the test when I update it next. Thank you for the great suggestion!
@EnlightenedStockTrading it's the one by Jay Rogers on tradingview, been using it to capture trends on the 5min based off mean reversion on the higher time-frames
Very good video, thank you
Glad you found it helpful - thanks for watching!
I use the Williams Percentage Range for mean reversion, you set it to a 200 period and it will give you the average divergence from the 200 period MA, why does no one else talk about this?
Nice approach - thank you for sharing!
hi thank you for sharing this, looks like a good strategy, can you share which indicator it is on tradingview for the consecutive up and down bars please, thanks.
Thanks for your comment… I am sorry I don’t use TradingView.
@@EnlightenedStockTrading no problem thanks for your reply 😀
When you enter in the direction of Trend, its Trend Following..Converse is Meane Reversion..You state for MR, but examples are TF..Plz correct me if wrong...
Mean reversion is typically when you buy after a short sharp counter trend move and hold for the snap back to the trend then sell.
Trend following is much longer duration and buys strongly trending instruments (often with breakouts but not always) and holding till the primary trend clearly changes… does that make it more clear?
can mean reversion be used on currencies and nasdak dear sir
Yes absolutely - you would just need to backtest it with the relevant pairs to check it works well.
Need a white board to explain things better
I’ll use more visuals and screen shares in future videos - thank you for the feedback
Bro u are coming close to spoon feeding the public working strategies. This is not good. There are always two sides to a transaction and one has to be an idiot for this to work. Lets keep it like that. Lol Im joking obvs.
I’m just trying to help traders out so they don’t lose a fortune in the market… I hope you enjoy and get value from my videos :-)
@@EnlightenedStockTrading Was just kidding bro. It was a compliment as well since I was implying that you know your stuff.
@@apathyreview3964 haha awesome - thank you for commenting, I really appreciate it! Hope your trading is going great!